Want to renovate your home, but a bad credit score holding you back? Read on to find out if you can still get a home improvement loan.
When you think of making changes to your home, the first thing that comes to mind is the list of various expenses involved. If you don’t budget your renovation properly, it could cost you a lot of extra money.
But what if you can’t afford the renovation to begin with? How do you do things like fixing the plumbing, installing new lights, or painting the walls?
The solution? A personal loan for home improvement , of course! Thanks to its ease of procurement, you’ll be able to switch things up in your personal space in no time!
Can I get One with Bad Credit?
The best part about this kind of loan is that you don’t have to have a top-notch credit score to be eligible for it. Most lenders will give you the loan even with a moderate or slightly poor credit score.
Of course, they will examine other factors, like your current income and capacity to repay the debt. Thanks to this, your credit score isn’t the only measure of deciding whether you deserve the loan.
Keep in mind, however, that you’ll be asked to pay a higher rate of interest than those with a better credit rating. But considering the fact that the rate of interest on personal loans varies across different financial institutions, finding the lowest one, and clearing the debt will be simple.
Benefits of Home Improvement Loan
Even if you’ve got bad credit, a home improvement loan can provide you an array of benefits.
- For starters, you won’t have to swipe your credit card to make changes around the house. Interest rates on credit cards are skyrocketing, and missing out on payments will affect your credit score negatively. So to avoid this, take a personal loan for home improvement instead.
- You can utilise the loan for internal purposes like painting the walls, fixing the plumbing, and changing the tiles in the bathroom. You’ll also be able to use the loan for external projects like building a porch or constructing an extra room.
- If you take a home improvement loan, you can utilise the funds you’ve saved in a month to cover your other financial obligations. Budget your home renovation well, and you can pay for it with the loan and clear the debt later in the form of EMIs.
What to remember
If possible, try using the home improvement loan on smaller projects, like installing doors and windows or painting the house. They take less time and can be more easily factored into your budget.
Bigger projects, like installing a new room, take weeks or even months to complete. It’s difficult to determine exactly how much you’ll be spending and hence, how much money to loan.
So if you’re finding it difficult to fund renovation projects, a home improvement loan should do the trick. Also, if you’ve taken a home loan, try asking the same lender for your home improvement loan. You’re sure to get a great offer, with a comparatively lower interest rate.
